13 Interest rates increase. Which of the following would tend...
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Accounting
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Interest rates increase. Which of the following would tend to occur as a result of this? The stock price for a positive DGAP bank will decrease Borrowers will tend to pre-pay their mortgage loans The market value of a principle only (P/O) split will increase O The market value of bank liabilities will increase O None of the provided answers is correct Which of the following is TRUE of both the DGAP and $ GAP? O Exactly two of the provided answers are true Both are used to compute the expected change in overall shareholder wealth, for a given interest rate change O Both require market value data, if available O Both a positive $ GAP and a positive Duration Gap suggest that the bank will benefit when interest rates decline Both can be used to measure interest rate risk
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